Motivation And Performance Analysis Of CSR Merging With CNR

The comprehensive strength and competitiveness of Chinese enterprises have increased significantly in the 40 years of reform and opening up,which have become the second largest economy in the world.China has become an influential economic power,which cannot be separated from the contribution of a group of international companies with international competitiveness and influence.Compared with international advanced large enterprises,although some of China's large enterprises,whether state-owned or private,have entered the top 500 in the world,there is still a certain gap between the competitiveness and core competitiveness.At the Third Plenary Session of the 16 th Central Committee of China,it clearly pointed out that we should develop large companies and large enterprise groups with international competitiveness.As the mainstay of the national economy,the competitiveness of large enterprises reflects the comprehensive strength and competitiveness of a country.Therefore,it is imperative to further accelerate the cultivation and development of large enterprises with international competitiveness.In recent years,the impact of global economic integration and financial crisis have provided our large enterprises with a good opportunity to catch up with the world's leading level and also brought unprecedented challenges to our large enterprises.As for our enterprises,how to survive and develop in the complex international economic environment,how to stand out in the fierce domestic and international market competition,how to occupy a place in the international market.Undoubtedly,mergers and acquisitions are one of the important means for many large enterprises to expand their scale,acquire new resources,improve efficiency,increase their value and enhance their competitiveness.CSR and CNR are large state-owned enterprises in China and they are one of the largest suppliers of rail transit equipment manufacturing industry in the world.Moreover,as representatives of high-speed rail,the two vehicles have gained obvious advantages in market competition.However,compared with international rail transit manufacturers,such as Bombardier,Siemens and Alstom,there is still a big gap.According to Brand Finance,only in 2010 before the merger of the two cars,CSR ranked among the top 500 brands in the world.With 13.6 billion yuan,CSR ranked 476 of the top 500 in the world,while CNR did not rank among the top 500 in the world.In order to further promote the development of China's advanced rail transit equipment manufacturing industry and enhance the competitiveness of North-South car in the international market,SASAC advocated thatwe can push the merger of the two cars.Therefore,CSR and CNR took the lead in opening the "strong merger" between large enterprises in China.It is in this context that this paper makes a preliminary analysis and discussion on the major theory and practice of the motivation and performance of the merger of North-South car in China.This paper takes the merger of North-South car in China as a case to study the motivation of the merger and the impact of the merger on the performance.Firstly,by consulting the domestic and foreign literature on the motivation and performance of the merger,the author searches for a large number of data about before and after the merger of North-South car in China and then collates and processes them.The full text is divided into five parts.The first part is the introduction.This paper mainly summarizes the background and significance of the study,the literature of the motivation and performance of mergers and acquisitions at home and abroad,the research ideas and methods,and the frame of this study.The second part is about the basic theory of enterprise absorption and merger.This paper defines the motivation of absorbing merger,absorbing merger and absorbing merger performance.And it analyses the influencing factors of absorption performance.What's more,in terms of the theory of scale effect,synergy effect,market power theory and market competition theory,it analyses that the motivation of enterprises' absorption and merger is to improve the market performance and financial performance of enterprises,that is,business strategy motivation and financial synergy motivation.This paper uses event study method,financial index analysis method,economic value-added analysis method and non-financial index analysis method to analyze the evaluation method of enterprise performance,which lays the foundation for the following case analysis.The third part is the introduction of the case of absorption and merger of North-South car.This paper mainly introduces the basic business situation,merger process and merger motivation of the two sides in the merger of North-South car in China.The fourth part is the analysis of the impact and reasons of the performance of the absorption and merger of North-South car.This paper chooses debt paying ability,profitability and development ability indicators to analyze the financial performance before and after the merger of North-South car in China;It uses economic value-added analysis method to analyze the economic effects before and after the merger of North-South car in China;It uses event study method to analyze the performance evaluation of North-South car market.Finally,combined with the non-financial index analysis method,the performance of North-South car merger is evaluated comprehensively by market share,core competitiveness and technologicalinnovation ability.The fifth part is the conclusion and enlightenment of the case of absorption and merger of North-South car.CSR and CNR achieved economies of scale and synergies and improved performance in the short term through mergers.However,the long-term performance has declined,which may be related to post-merger integration.After the merger,CRRC has become the largest supplier of high-speed rail technology in the world.And at the same time,it expanded its scale,improved its operational efficiency and its R&D efficiency,unified its global strategy and achieved a stronger international competitiveness.The successful "strong and strong merger" of North-South car also provides a reference for the subsequent large-scale enterprise merger,which has a strong demonstration effect.